Consumer Reporter Lets Collection Agency Wolpoff & Abramson Get Away With It

When Pete Landini got a shocking demand letter from the Wolpoff & Abramson collection law firm he asked question. The letter from the debt collection agency said he owed 8 grand to Verizon that he knew nothing about.

Pete was able to determine on his own from one call to Verizon the demand letter was false. However, instead of seeking to enforce his rights under the FDCPA, he called a TV station.

"12 On Your Side" got the tortfeasing debt collectors to claim the account was no longer in their office. But Wolpoff & Abramson suffered no civil, criminal or financial penalty. There was not even the slightest speed-bump of social sanction that would inhibit their fraudulent actions against the next member of Pete Landini's community or channel 12's viewing audience.

When consumer reporters start coordinating with state attorney generals and public interest law firms those phone calls they make to inquire about debt collection racketeering will start to do some actual good.

Lenders Victimized Consumers With Predatory Loans

California Attorney General Edmund G. Brown Jr. has closed Lifetime Financial, Nations Mortgage, Greenleaf Lending, Virtual Escrow, Olympic Escrow and Direct Credit Solutions, accusing them of running a complex predatory lending scheme using bait and switch tactics to victimize thousands of consumers in California, many of whom have lost their homes.

San Bernardino District Attorney Michael A. Ramos also announced that several individuals affiliated with Lifetime Financial were arrested on charges including conspiracy, grand theft, forgery and elder abuse.

Attorney General Brown announced plans to bring additional legal actions, both civil and criminal, in the comming weeks against other lenders victimizing homeowners across California.

Credit Is Too Expensive From Payday Lenders Says Arkansas

The Arkansas state attorney general in is shutting down predatory payday lending offices, saying the fees charged are a danger to the state and against the law.

"It is the position of this office that you must cease and desist your payday lending practices," Attorney General Dustin McDaniel said in the letters.

"These businesses have made a lot of money on the backs of Arkansas consumers, mostly the working poor," McDaniel said in a statement. "Charging consumers interest in the range of 300 to 500 percent is unlawful and unconscionable and it is time that it stops."

McDaniel acted after the Arkansas state Supreme Court ruled the high interest rates charged by payday lenders violate the state constitution and the Arkansas Deceptive Trade Practices Act.

Your Credit Report Might Deny Your Healthcare

Accuracy on your credit reports might determine if you receive health care the next time you need it.

Credit checks by hospitals are becoming more commonplace, as the industry seeks to identify those patients to pursue for payment, according to an article in The Wall Street Journal today. Some hospitals are peeking into patients' credit reports, which contain information on people's lines of credit, debts and payment histories. Other hospitals are contracting with outside services that snoop on patients and predict a patient's income and whether he or she is likely to walk away from a medical bill. Hospitals often use these services when patients are uninsured or have big out-of-pocket costs despite having health insurance.

Consumer advocates say the practice breeds the potential for hospitals to abuse the information by denying or cutting back on patients' care if the snooping creates a suspicion they won't pay.

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Credit Reports Can Deny Employment

Accuracy on your credit reports can mean more than your access to more credit or affordable interest rates. Your credit report can determine if you get the next job.

Many employers are now using credit checks to vet job applicants.

Under the 1996 Fair Credit Reporting Act, companies can review credit reports of applicants and employees only with their permission. Typically, job applications include a yes-or-no check off box. Saying no to a credit review raises the same red flags that bad credit does.

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Collection Agencies and Collection Lawyers Might Be In Trouble

The Recording Industry Association of America (RIAA) has been sued for racketeering, fraud, and illegal spying by an Oregon woman who added claims to an existing lawsuit against the RIAA, several recording companies, and data investigation company MediaSentry for tactics in use as part of an RIAA campaign to sue music downloaders.

If Anderson wins it will establish the defendants and their bill collectors violated private investigation laws, used illegal methods of seeking payment, pursued litigation even though they should have known that the investigations were illegal, and intentionally caused emotional distress through malicious prosecution.

Lawsuit Makes TransUnion Help Some Identity Theft Victims

Eric Drew filed negligence suits against TransUnion, Bank of America, Chase, Citibank, Equifax and Experian so that others wouldn't have to live the nightmare he did.

While Eric Drew was in the hospital for leukemia his identity was stolen by a hospital worker. Credit was issued in Eric's name to a fraudulent address used by the identity thief. When Drew called to complain from his hospital bed, he was told to submit paperwork to prove that it wasn't him.

"I was fighting for my life, barely able to function, and then on top of all that, I had to leave the hospital to help find the criminal and fight to clear my credit," said Eric. "I was determined not to let cancer or a thief get the best of me."

The thief was eventually caught but that did not clear Eric's name. It took him two years to clear his credit reports of the fraudulent address and phony account information.

In this unprecedented settlement, TransUnion agreed on an undisclosed financial sum, as well as three major policy changes which they have agreed to implement in the next six months.

These policy changes include:

* Protection for impaired (hospitalized or elderly) victims of identity theft by allowing them or their caregivers to submit a verifiable note from a doctor or medical facility in lieu of the traditionally required police report and affidavit to have fraudulent items removed from their credit report.

* All victims of identity theft will have all information pertaining to that theft permanently removed from their credit report even if it is re-reported.

* A free credit freeze for all victims of identity theft when they request it.

Eric's legal battle with Bank of America, Chase, Citibank, Equifax and Experian on behalf of others continues.